Bankruptcy

Some of the soapster's most recent comments about Big Government got me thinking and instead of directly responding to his previous remarks I thought I'd do a blog about how far back the problem really goes and today we're gonna focus on this thing called Bankruptcy. Now I always have First Impressions of everything, gut feelings, call it my Primeval Conservatism at work and if you provide a good or service for somebody and you don't get paid and that person or company or corporate entity does not have to pay you after hiding behind a bankrupty filing well that just seems immoral and unjust to me. Of course your initial reaction can me modified by other factors as I feel credit-card companies charge usurious (there's a word you don't hear anymore) interest rates and so the person legitimately trying to pay off his debt gets shafted. Now I'm no lawyer and don't know all the intricacies of bankruptcy law, there's this chapter and that chapter and a few subclauses but you take a large company that has gone into 3 billion dollars in debt let's say and then they get protected by the Bankruptcy Court and get a chance to reorganize their gangster outfit and even get a bailout or loan for their troubles. Well HOW exactly did they go 3 billion dollars into the hole in the first place? At what point in time did nobody notice what was going on? Where was the company auditor in all of this, asleep at the switch? Was there corruption, were honchos putting their hands in the till? The people who were responsible, have they been held to task and if need be prosecuted or at least told to look for other work? Well in our fictitious example (or maybe the better word is factitious) all these questions become moot as they in effect get rewarded for their past bad behavior. Now I have a few philosophical issues with Ayn Rand but at least in her vision if a company deserves to go out of business they deserve to go out of business and in a pure laissez-faire marketplace system businessmen would be forced to be more careful and then there's the question of how is a bankrupt company gonna pay off a government loan (well actually a bank loan but the government is somehow involved as always)? So a couple of immoral things have happened, the vendors who provided certain goods and services won't get paid and the company gets rewarded in effect for their past bad, irresponsible or even corrupt behavior by getting a loan because it's been deemed by Big Government they're too big to fail.

The Republicans "reformed" bankruptcy laws, the Dems want to swing back but I say we need to start at Square One again. IMO it's the bailouts that drive the Tea Party. I give you something, you don't pay me and the government protects you and even arranges to get you more money. If you don't see the dysfunction here then you're not a true conservative, maybe a neocon at best. President Obama in his speech at the AZ Memorial Service spoke briefly about what he called "the forces that divide us." Well no Mr. President it's the forces that disagree with you and your vision of what government should be but this old old polemical device seems to be a favorite of his. So in effect we are left with failing companies that have run their course, should be out of business by their own doing but are being propped up by the government. Remember when the Five & Dime (Woolworth's) went out of business? THAT'S the natural course of events or used to be and it may be Destiny's way of telling you you need to be doing something else with your life, accept it. The Question Before the Board today: should we get rid of ALL bankruptcy laws?:)